Is the reason for the fall today ?15 Jan 2024 15:19
Investec: Diversified Energy dividend at risk without asset sales
According Investec analyst Alex Smith, US oil and gas producer Diversified Energy (DEC) has one of the top dividend yields on the London Stock Exchange, at over 20 per cent, but its balance sheet is starting to creak. He said the payout would have to come down without further asset sales. “Currently, the company does not have the liquidity beyond 12 months to maintain its current dividend,” Smith said, estimating the company’s annual interest payments at $174mn (£137mn).
Earlier this month the company announced an asset sale that would bring in $200mn, although was more a complex spin off transaction than standard divestment. Diversified shares fell 5 per cent on Monday morning. AH